Story’s IP Posts a 20% Shift During Tumultuous Trading Hours

Story Protocol’s IP Token Faces Extreme Volatility, Dropping 20% Before Rapid Recovery

Story Protocol’s IP token experienced a highly volatile trading session late Monday, with its price plummeting by 20%, only to rebound and recover the entire loss within hours, marking a dramatic and unusual market movement. The IP token, which had been trading close to $4, dropped to a low of $3.27 before quickly climbing back above $4, showcasing its resilience.

The majority of the trading activity occurred on major exchanges, particularly Binance and OKX Spot, with over $40 million in volume preceding the decline, and a staggering $138 million in volume during the recovery. The massive spike in trading volume suggests that the price action was driven by substantial spot market transactions, rather than futures-based speculation.

During the same time, the broader cryptocurrency market remained relatively stable, with Bitcoin holding steady around $84,000 and altcoins experiencing minimal movement. This made the sharp movement of IP tokens stand out as a unique event amidst an otherwise calm market.

As the price action unfolded, rumors began circulating that large amounts of IP tokens, along with other tokens such as MOVE and LAYER, were being sold off in over-the-counter (OTC) deals at discounted rates. This led to speculations of possible coordinated selling or insider activity, with some community members expressing concerns about market manipulation.

Despite these rumors, the futures market for IP tokens showed relatively low losses, with only $1.4 million in cumulative losses, suggesting that the volatility was mostly contained to the spot market, where actual tokens were being bought and sold.

The situation triggered comparisons to the recent sharp sell-off in Mantra (OM) tokens, which lost 90% of its value in a short period of time. However, the cause of the IP token’s price swings remains unclear, leaving traders and market analysts to ponder the reasons behind this dramatic movement.

Story Protocol, which aims to tokenize intellectual property on a Layer 1 blockchain, continues to focus on empowering creators to register, license, and monetize their work on-chain. Despite the recent volatility surrounding its IP token, the project’s long-term goal of transforming the intellectual property landscape remains intact.